July 21, 2011

FINRA Suspends Former NEXT Financial Broker, for Two Years for Improper Trading in Customer Accounts

WASHINGTON —It was announced July 20, 2011, on FINRA's website that The Financial Industry Regulatory Authority (FINRA) has suspended William Bailey, a former NEXT Financial Group, Inc. broker of Mesa, Arizona, from the securities industry for two years for unsuitable and excessive trading of mutual funds and variable annuities. Bailey also engaged in discretionary trading without receiving prior written approval from his customers.

It was reported that FINRA found between January 2006 and December 2007, Bailey recommended 484 short-term mutual fund switch transactions in seven customer accounts. In each of the accounts, Bailey, on his customers' behalf, repeatedly sold mutual funds less than one year after purchasing them, and purchased new mutual funds with the proceeds. With Bailey's frequent switches, on average, his customers held their mutual funds for only 60 days. The seven customers, who ranged in age from 66 to 93 and were all unsophisticated investors, incurred over $147,000 in sales charges and trading fees. Bailey received over $120,000 in commissions from these sales. To facilitate his mutual fund trading scheme, Bailey frequently traded in his customers' accounts without first obtaining their permission and improperly completed customer account forms to make it appear the customers approved of the trading.

 In the FINRA article it was reported that FINRA also found Bailey convinced three customers to switch their variable annuities for new ones after holding them for a short period of time. These exchanges were unsuitable based on the customers financial objectives and needs, and did not improve the customers' financial situations.

 Mr. Brad Bennett, FINRA Executive Vice President and Chief of Enforcement, said, "Brokers who engage in excessive trading will be held accountable. In this case, Mr. Bailey rapidly switched his elderly and unsophisticated customers in and out of mutual funds with high costs, providing a benefit to Bailey instead of to his customers."

In settling this matter, Bailey neither admitted nor denied the charges, but consented to the entry of FINRA's findings.

This information was obtained on FINRA's website.

Securities Attorney, Lars Soreide, of Soreide Law, PLLC, has represented clients nationwide. If you or a family member feel you have become a victim of William Bailey or Next Financial Group, Inc., or a similar situtation, call a Securities Arbitration Lawyer for a free consultation on how to potentially recover your losses.  To speak with an attorney, call 888-760-6552, or visit www.securitieslawyer.com.

Soreide Law Group, PLLC., representing investors nationwide before FINRA  the Financial Industry Regulatory Authority.

Recent Posts

March 26, 2024
Stifel Fined $400K by FINRA

According to a recent article in Wealth Management, Stifel will pay over $400,000 to settle FINRA disciplinary charges that the firm allegedly did not properly supervise one of their registered representatives who misappropriated over $100,000 from an elderly client. Stifel agreed to the penalties without admitting or denying FINRA’s findings. In addition to a $400,000 penalty, Stifel […]

March 18, 2024
JAYSON R POCIUS Barred by FINRA

JAYSON R POCIUS, a former broker with Wells Fargo Advisors Financial Network, LLC of Arlington Heights, IL, who was registered with Wells Fargo from 2019 through June of 2023, was barred from the securities industry by FINRA on March 8, 2024, after he failed to cooperate with an investigation by the Financial Industry Regulatory Authority […]

March 15, 2024
William Savary Fined, Involved In Investor Complaint

Soreide Law Group is looking into possible investor claims on behalf of those who incurred losses through securities broker William Savary [CRD: 1069141, Gig Harbor, Washington]. Evidently, Savary joined Abraham Securities Corporation on August 12, 2021. He previously worked for Spencer-Winston Securities Corporation from October 3, 2019, to July 23, 2020. Keep reading to learn […]

Contact us Nationwide USA
2401 E. Atlantic Blvd., Suite 305, Pompano Beach, FL 33062
Helping clients recover money across the USA
search
Copyright © 2022 Soreide Law Group, PLLC  |  All Rights Reserved
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram